A maker of complete car seating systems — frames, foam, trim, and mechanisms — for automakers like BMW, Ford, GM, Toyota, VW, and newer EV brands such as BYD and NIO. Born in 2016 when Johnson Controls spun off its longtime automotive seating division, the company is now one of the world's largest seating suppliers, with a big presence in China. Its name comes from the Latin "adiens," meaning "approaching" or moving toward something — chosen to signal its constant drive to engage and improve.
EMEA segment earnings fell 33% as the region's recovery reversed, while Americas rose 12% and net income dropped 31% on higher taxes.
The EMEA recovery that began last quarter reversed sharply. rose 5% to $3.9 billion and Americas climbed 12% to $125 million, but EMEA segment Adjusted EBITDA fell 33% to $14 million and dropped 31% to $25 million as higher tax expense and costs outweighed operating gains. The Americas business is carrying the company while Europe deteriorates again.
Key takeaways
EMEA fell 33% to $14 million, reversing the 55% rebound reported in Q1 FY2026 and the 10% decline in Q2, as unfavorable volume and mix and weaker operating performance returned the region to near its Q1 FY2025 trough of $22 million.
Americas rose 12% to $125 million on favorable volumes and mix and net operating performance, extending the operational improvement trend that has now run for multiple quarters.
Section summaries
Management's Discussion and Analysis
Q3 FY2026 net sales rose 5% to $3.9B on higher Americas/Asia volumes, but net income fell 31% to $25M on higher taxes and SG&A.
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Consolidated increased 5% to $3,929M, driven by higher production volumes in Americas and Asia and favorable foreign currency, partially offset by lower EMEA volumes.
declined 1% to $235M (6.0% margin) as unfavorable foreign currency and volume/mix more than offset favorable net operating performance and IEEPA tariff refund benefits.
fell 31% to $25 million, driven by higher income tax expense of $23 million compared to $7 million a year ago and increased , partially offset by lower noncontrolling interest and higher equity income.
rose 5% to $3,929 million, with higher production volumes in the Americas and Asia and favorable foreign currency translation more than offsetting lower EMEA volumes.
contracted 0.4 points to 6.0%, as unfavorable foreign currency and volume and mix outweighed favorable net operating performance and tariff refund benefits.
improved to $366 million year-to-date on favorable , and liquidity remained available with $834 million undrawn under the amended $1,000 million .
What changed
The EMEA 's recovery flagged in Q2 FY2026 as a risk has now reversed: after rebounding 55% in Q1 FY2026 and then falling 10% in Q2, it fell a further 33% this quarter to $14 million, putting it below the Q1 FY2025 trough of $22 million and raising the question of whether the $15 million annual cost savings from the 2026 restructuring plan will be enough.
The Americas 's 12% growth this quarter answers the question raised in Q1 FY2026 about whether that quarter's 6% decline was a one-off disruption: the segment has now posted growth in two of the last three quarters, suggesting the operational improvement trend is intact despite tariff headwinds.
The Asia 's 5% decline this quarter follows the 16% drop in Q2 FY2026, confirming that the volume-driven growth reported in Q1 FY2026 has given way to margin pressure from unfavorable production mix and customer pricing — a trend that now spans two consecutive quarters.
Net tariff expense continues to affect results, appearing this quarter in the bridge as an offset to favorable operating performance, though the tariff refund benefits provided a partial counterweight; the question of customer recoveries versus absorption remains unresolved.
What to watch
Whether EMEA stabilizes above the $14 million level or falls further, and whether the $15 million annual cost savings target from the 2026 restructuring plan begins to show in segment margins by fiscal 2027.
The outcome of the next EMEA test, given the 's renewed deterioration and management's prior disclosure that fair value exceeded carrying value by less than 10%.
Whether the Americas 's 12% growth is sustainable if U.S. tariff policy continues to affect production costs, and whether the tariff refund benefits that helped this quarter recur.
The trajectory of the Asia 's after two consecutive quarters of decline, and whether the unfavorable production mix and customer pricing pressures are structural or tied to launch costs that will fade.
Americas rose 12% to $125M on favorable volumes/mix and net operating performance; EMEA fell 33% to $14M on unfavorable volume/mix and operating performance.
Asia decreased 5% to $107M as unfavorable production mix and lower outweighed favorable net operating performance.
attributable to Adient fell 31% to $25M, primarily due to higher income tax expense ($23M vs. $7M) and increased SG&A, partially offset by lower noncontrolling interest and higher .
Liquidity remains solid with $834M available under the amended $1,000M ABL ; improved to $366M year-to-date on favorable .
Quantitative and Qualitative Disclosures About Market Risk
As of June 30, 2026, Adient had not experienced any adverse changes in market risk exposures that materially affected the quantitative and qualitative disclosures presented in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
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As of June 30, 2026, Adient had not experienced any adverse changes in market risk exposures that materially affected the quantitative and qualitative disclosures presented in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
Adient is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability, product safety, environmental, safety and health, intellectual property, employment, trade and other regulatory compliance…
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Adient is involved in various lawsuits, claims and proceedings incident to the operation of its businesses, including those pertaining to product liability, product safety, environmental, safety and health, intellectual property, employment, trade and other regulatory compliance, commercial and contractual matters and various other matters. Although the outcome of any such lawsuit, claim or proceeding cannot be predicted with certainty and some may be disposed of unfavorably to Adient, it is management's opinion that none of these will have a material adverse effect on Adient's financial position, results of operations or cash flows. Adient accrues for potential liabilities in a manner consistent with accounting principles generally accepted in the United States; that is, when it is probable a liability has been incurred and the amount of the liability is reasonably estimable.
Information with respect to this item may be found in Note 17, "Commitments and Contingencies," of the notes to the consolidated financial statements in this Quarterly Report on Form 10-Q, which information is incorporated herein by reference.
Additional information on Adient's commitments and contingencies can be found in Adient's Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
Geopolitical conflicts and non-U.S. operational risks threaten supply chains, currencies, and demand in key automotive markets.
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Ongoing Middle East conflicts and the Russia-Ukraine war continue to disrupt commodity supplies, raise energy costs, and risk further sanctions that could destabilize global automotive supply chains.
Significant non-U.S. operations expose Adient to foreign currency volatility, and programs may fail if forecasts are inaccurate, harming financial results and period comparability.
Political and economic instability in Asia, South America, and Europe could disrupt markets and reduce cash flows needed for capital needs and debt service.
Protectionist measures, trade restrictions, and sanctions could prohibit acquisitions, limit trade volumes, or trigger operational shutdowns in key regions.